Lavendon, currently the subject of a takeover battle between Loxam of France and TVH of Belgium, said in a trading update today that its 2016 results will be ahead of expectations.
UK operations, trading as Nationwide Platforms, accounts for 46% of Lavendon group revenues. A surge in business towards the end of the year, coupled with firmer rates, saw UK rental revenues rise 12% for the fourth quarter.
鈥淭his revenue growth, supported by fleet investment and better availability from the increased efficiency of our transport and maintenance operations, has delivered the expected year on year improvement in profitability and operating margins,鈥� the company said.
The Middle East accounts for 26% of group revenues; here rental revenues rose 16% during the year. Rental revenue in mainland Europe, which accounts for 28% of the total, was up 2%.
Chief executive Don Kenny said: 鈥淭he group has delivered a strong performance in 2016 with growth in revenues driving increased profitability and margins. As a consequence, the board now expects the group's results for 2016 to be ahead of its expectations. As we move into 2017, whilst recognising the uncertainty in the macroeconomic outlook, the group is well placed to build on the momentum developed during the past few years and to make further progress in the year ahead.鈥�
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